Who chooses the name and symbol of a collection token?

The first tokenizer chooses the name and symbol when creating a token for the collection. Other participants can deploy additional tokens for that same collection with different parameters. The same collection can therefore appear under multiple ERC-20 contracts; names and symbols alone do not establish token identity.

Can several NFTs be deposited or redeemed in the same batch?

Tokenize NFT supports depositing or redeeming multiple NFTs together through batch operations. Batching retains the same minting and redemption rules: deposits produce one ERC-20 token per NFT, and redemption burns whole units. Redeemed NFTs still follow first-in, first-out order; batching does not introduce a choice of individual NFT identifiers.

How does ERC-404 relate to the Tokenize NFT design?

ERC-404 provides the design inspiration for Tokenize NFT, whose mechanism uses ERC-721 deposits and ERC-20 balances. Those standards describe different assets: individual NFTs and divisible token units. The relationship rests on depositing NFTs to mint units and burning whole units to redeem NFTs.

Can tokenized NFT balances be bridged to another network?

Bridging requires support for the particular ERC-20 token and the networks involved. Tokenize NFT makes ERC-20 balances available for compatible integrations, but that format alone does not establish a bridge route. A bridge handles token movement between networks; the tokenization mechanism governs deposits and whole-token NFT redemption.

Are NFT deposits and redemptions charged the collection-token initialization fee?

The Tokenize NFT fee model charges for creating a new collection token, while tokenization and redemption have no separate feature fee. Initialization concerns creating the deployment, rather than each NFT that later enters or leaves it. Network execution costs and fees for separate trading or bridging operations are different charges.

Does holding a tokenized NFT share automatically earn farming rewards?

Holding a tokenized NFT share does not itself establish a farming position. Farm2Earn involves supplying liquidity and staking the resulting liquidity provider (LP) tokens in a corresponding farm. A collection token’s ERC-20 format alone does not establish that a suitable farm exists. Eligibility for farming remains separate from NFT tokenization.

Zkswap fractional NFT tokens and whole-token redemption

Last updated Oct 16, 2026

Zkswap enables fractional NFT trading through Tokenize NFT, which issues one ERC-20 token for each deposited ERC-721 NFT. The token balance can circulate in fractions, while redemption requires whole-token burns. NFTs leave the tokenization pool in deposit order, so redemption follows a queue. Its Monad Testnet deployment concerns assets within that test environment.

Deposited NFTs establish the unit behind each ERC-20 balance

Every NFT deposited through Tokenize NFT produces one ERC-20 token in the corresponding deployment. This minting ratio does not set either asset’s market price.

ERC-721 gives each NFT an individual identifier. ERC-20 represents a divisible, fungible token balance.

The original NFT remains whole while the issued token supports smaller holdings. Holders can transfer fractions without the tokenization mechanism dividing the deposited NFT into separate ERC-721 assets. A fraction therefore represents part of the fungible balance associated with that deployment.

Balances are interchangeable within the same ERC-20 token contract. Tokens issued by different contracts remain separate assets, even when they share a collection.

Fractional trading depends on a market for the collection token

An ERC-20 format makes the issued balance transferable and usable in token markets that support that specific deployed asset. Executing a swap additionally requires a trading route and available liquidity for that specific token. Tokenization supplies the asset representation; it does not supply a buyer for every fraction or establish an executable price for every amount.

Pool pricing concerns the ERC-20 balance that a trade exchanges. The pool does not quote each deposited NFT separately. A one-token minting ratio consequently does not mean one token will trade at a fixed currency value, or at the same price as a particular NFT. The available market determines the exchange quote.

Whole-token burns make NFT redemption possible

Tokenize NFT requires whole ERC-20 tokens to be burned when redeeming NFTs. Fractional balances can circulate, but a fraction alone cannot meet the burn requirement for an entire NFT.

Burning removes the redeemed token units from circulation. Transferring tokens between holders does not itself request an NFT release.

Trading and redemption produce different assets. A swap exchanges the collection token for the market’s quoted output. Redemption exchanges complete token units for the NFTs that the tokenization mechanism releases.

Quantity and selection follow separate rules. Whole units establish how many NFTs a burn can release; first-in, first-out (FIFO) ordering establishes their identities.

Collection token setup connects deposits with eventual NFT release

Token creation establishes the deployment, and depositing NFTs supplies its backing. Trading between issuance and redemption is optional.

Overview: Collection token setup connects deposits with eventual NFT release
Operation	Requirement or outcome
Collection token setup	Use an existing deployment, or initialize a new token for the collection.
NFT deposit	ERC-721 NFTs enter the selected tokenization deployment.
ERC-20 minting	Each deposited NFT produces one token in that deployment.
Balance holding or trading	Transfers and fractional trades are optional; swaps need compatible markets.
Whole-unit redemption amount	The amount redeemed must consist of whole units of the matching token.
Token burn	Redemption destroys the whole token units used for the NFT release.
NFT release	The deployment returns deposited NFTs in first-in, first-out order.

The ERC-20 balance can remain in circulation without redemption.

Which NFT does a whole-token redemption return?

Redemption returns NFTs in first-in, first-out order, based on when they entered that tokenization deployment. The oldest NFT still held in its queue leaves before later deposits. An ERC-20 unit therefore gives access to the pool’s redemption order, rather than reserving a particular NFT identifier for its holder.

The depositor’s identity does not determine queue priority. Earlier redemptions may already have removed an originally deposited item. Ownership of the collection token consequently does not reserve that original NFT for its depositor.

Different token deployments keep their redemption balances separate

The same NFT collection can have multiple token deployments with different parameters. Those deployments create distinct ERC-20 assets, even when they refer to the same underlying collection. Each tokenization relationship concerns the NFTs deposited for that token and the units issued against them. Combining balances across different token contracts does not combine their redemption backing.

A ticker is a display label, while the deployed token contract identifies which ERC-20 balance a market or redemption operation handles. Where several collection tokens exist, their separate supplies and deposit queues remain distinct.

Network selection keeps NFT backing and token balances together

The Monad Testnet deployment includes an NFT Wrapper Factory and NFT wrappers for this feature. Its collection tokens and deposited NFTs belong to that test environment. A testnet token balance does not establish ownership of an NFT on another network.

Liquidity pools add a trading function to the issued tokens

Tokenized NFT balances can serve as inputs for supported V2 or V3 liquidity pools. The ERC-20 token is the asset supplied to the pool; tokenization establishes its relationship to deposited NFTs. Pool liquidity then supports swaps involving that token, subject to the market and contracts that actually support it.

Pool depth depends on balances committed for swaps. NFT backing depends on the ERC-721 assets held for redemption. Supplying collection tokens as liquidity gives them a trading function while the underlying NFTs remain whole. The collection token connects the trading pool to its NFT backing without making the two pools interchangeable.

Is a V3 liquidity position NFT the same as a tokenized NFT?

A V3 liquidity position NFT and a Tokenize NFT balance represent different assets. The V3 AMM on ZKsync Era represents each liquidity position as an NFT for a selected price range. Tokenize NFT issues fungible ERC-20 units against deposited ERC-721 assets. The position concerns liquidity committed to a trading pool; the collection token concerns NFT deposits available through whole-token redemption.

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What readers ask about Zkswap

Who chooses the name and symbol of a collection token?: The first tokenizer chooses the name and symbol when creating a token for the collection. Other participants can deploy additional tokens for that same collection with different parameters. The same collection can therefore appear under multiple ERC-20 contracts; names and symbols alone do not establish token identity.
Can several NFTs be deposited or redeemed in the same batch?: Tokenize NFT supports depositing or redeeming multiple NFTs together through batch operations. Batching retains the same minting and redemption rules: deposits produce one ERC-20 token per NFT, and redemption burns whole units. Redeemed NFTs still follow first-in, first-out order; batching does not introduce a choice of individual NFT identifiers.
How does ERC-404 relate to the Tokenize NFT design?: ERC-404 provides the design inspiration for Tokenize NFT, whose mechanism uses ERC-721 deposits and ERC-20 balances. Those standards describe different assets: individual NFTs and divisible token units. The relationship rests on depositing NFTs to mint units and burning whole units to redeem NFTs.
Can tokenized NFT balances be bridged to another network?: Bridging requires support for the particular ERC-20 token and the networks involved. Tokenize NFT makes ERC-20 balances available for compatible integrations, but that format alone does not establish a bridge route. A bridge handles token movement between networks; the tokenization mechanism governs deposits and whole-token NFT redemption.
Are NFT deposits and redemptions charged the collection-token initialization fee?: The Tokenize NFT fee model charges for creating a new collection token, while tokenization and redemption have no separate feature fee. Initialization concerns creating the deployment, rather than each NFT that later enters or leaves it. Network execution costs and fees for separate trading or bridging operations are different charges.
Does holding a tokenized NFT share automatically earn farming rewards?: Holding a tokenized NFT share does not itself establish a farming position. Farm2Earn involves supplying liquidity and staking the resulting liquidity provider (LP) tokens in a corresponding farm. A collection token’s ERC-20 format alone does not establish that a suitable farm exists. Eligibility for farming remains separate from NFT tokenization.